U.S.-Stock Funds Rose 19.1% in a Grueling 2020
The average is less than it was in 2019, but it could be seen as more impressive considering what the economy and markets had to overcome last year
Stock-fund investors are enjoying gains, but are also cautious. That’s why they have been sending billions of dollars to bond funds. Illustration: Giacomo Bagnara By William Power
For a second straight year, stock-fund investors pocketed big gains. But their fingers are crossed.
Powered by a 19.0% rally in the fourth quarter, the average diversified U.S.-stock fund rose 19.1% for the year, according to Refinitiv Lipper data. That wasn’t as strong as the average 28.3% gain in 2019, but it could be seen as more impressive considering what the economy and markets had to overcome last year.
By Carlo Maximilian Funk, EMEA Head of ESG Investment Strategy; Suzanne Smetana, ESG Investment Strategy & Research
In a year dominated by the COVID-19 pandemic, there has been a renewed focus from governments and companies on the need to address climate change and other sustainability challenges. For their part, many investors are integrating ESG and climate considerations across their portfolios in response to changing attitudes and regulations. Where will all this take us?
Read on for our five ESG themes for 2021 and why we see ESG emerging as the new normal.
1 ESG outlook: Europe marches forward; US, China and emerging markets
Top Moat Stocks in 2020: Veeva, ServiceNow and Amazon
The
SM (the “Index”) finished 2020 on a strong note, outpacing the S&P 500 Index by over 3% in the fourth quarter (15.28% vs. 12.15%, respectively). Its strong performance erased much of its mid-year underperformance but wasn’t enough to close the gap for the year, ending behind the S&P 500 (15.09% vs. 18.40%, respectively).
This was the first year in which the Index underperformed the S&P 500 by a notable amount since its 2014 and 2015 underperformance, which was followed by a very strong 2016 and subsequent years of impressive excess returns.
Index Calendar Year Return (%)
-19.58
Source: Morningstar. Data as of 12/31/2020.Performance data quoted represents past performance. Past performance is not a guarantee of future results. Index performance is not illustrative of fund performance. Prior to 4/24/2012, VanEck Vectors Morningstar Wide Moat ETF had no operating history. For fund performance current to the mos